Mar 07, 2017

First-of-its-kind, long-term strategic partnership between Philips and stand-alone children’s hospital system will accelerate co-creation of solutions specifically designed to address the unique needs of children

Partnership builds on established clinical excellence in diagnostic imaging, and accelerates care delivery for children in the Southwest and those who come to Phoenix Children’s from around world

Collaboration, innovation and research between the organizations will also contribute to the way Philips addresses pediatric needs both now and in the future

Amsterdam, the Netherlands, and Phoenix, Arizona – Royal Philips (NYSE: PHG, AEX: PHIA) a leading health technology company, and Phoenix Children’s Hospital, a U.S. News and World Report “Best Children’s Hospital,” today announced a long-term strategic partnership with a total value of up to USD 65 million. Phoenix Children’s is the first stand-alone children’s health system to sign a long-term, strategic partnership model with Philips. The partnership develops from a leading collaboration in diagnostic imaging to expand the Phoenix Children’s programs and further drive clinical excellence. Phoenix Children’s will have access to Philips’ advanced medical technologies like imaging systems in CT, MRI and angiography, patient monitoring, clinical informatics, and a comprehensive range of clinical and business consulting services. These technologies and services will help Phoenix Children’s expand its high standards of care and integrate its divisions and facilities for a seamless patient experience.

“Philips technology provides sophistication in patient diagnosis and strategic foresight that improves the solutions and care our teams deliver,” said Dr. Richard Towbin, Division Chief of Pediatric Radiology at Phoenix Children’s. “Together, Phoenix Children’s and Philips developed technologies such as dose reduction using iterative CT reconstructions and pediatric MRI protocols that are now factory standards worldwide. We also have an advanced 3D print laboratory that constructs life-size models of patients’ hearts and other organs, illustrates exact tumor size, and uses post-processing software to study heart and brain physiology using MRI and CT.”

Philips and Phoenix Children’s have a shared commitment to clinical excellence and connected patient care that can help drive efficiency, while improving the patient experience and outcomes. Through innovation, the two organizations want to make healthcare more sustainable and accelerate solutions and services specifically designed to address the needs of children.

“The staff at Phoenix Children’s continues to push the boundaries of pediatric care and we want to build on the great work they have done, marrying their deep understanding of children’s clinical needs with our leading technologies and research, to create integrated solutions that can support this precious segment of society, ” said Brent Shafer, CEO of Philips North America. “Phoenix Children’s has helped us to take our innovations in diagnostic imaging to the next level and we look forward to working with them to do the same in the areas of patient care monitoring and informatics, exploring how to apply machine learning and accelerating the transformation of pediatric care.”

Phoenix Children's provides world-class inpatient, outpatient, trauma, emergency and urgent care to children and families in Arizona and throughout the Southwest. As one of the largest children’s hospitals in the country, Phoenix Children’s provides care across more than 75 pediatric specialties.

“Phoenix Children’s values working with partners who understand treating children is more complex, and this population shouldn’t simply be categorized as ‘little adults’,” David Higginson, Chief Administrative Officer at Phoenix Children’s. “Philips understands the long-term value of investing in pediatric care, even though it is a relatively small subset of the healthcare market, and is willing to invest time and research into the unique needs of pediatric care, which makes us confident in this partnership. Our insights and research paired with the knowledge and scale of a technology leader like Philips will help us jointly develop solutions that can have meaningful impact on global pediatric health.”

About Royal Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips' health technology portfolio generated 2016 sales of EUR 17.4 billion and employs approximately 70,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.

About Phoenix Children's Hospital

Phoenix Children’s Hospital is Arizona’s only children’s hospital recognized by U.S. News & World Report’s Best Children’s Hospitals with rankings in all ten specialties. Phoenix Children's provides world-class inpatient, outpatient, trauma, emergency and urgent care to children and families in Arizona and throughout the Southwest. As one of the largest children’s hospitals in the country, Phoenix Children’s provides care across more than 75 pediatric specialties. The Hospital is poised for continued growth in quality patient care, research and medical education. For more information about the hospital, visit http://www.phoenixchildrens.org.